Cost Value Analysis
One of the most effective ways of interpreting conjoint analysis results is to create cost-value charts for each attribute. Cost-value charts compare the perceived value of each benefit with the cost to deliver that benefit. When perceived value is higher than actual cost, you have identified an opportunity to add value to a product or to charge an elevated price for the benefit. Cost-value charts can be included with any conjoint project to give you a visual method of identifying opportunities and weaknesses and quantifying the relative value of each benefit tested. On insurance products, costs are represented by the estimated actuarial cost to deliver each benefit or the relative difference between each benefit tested. For other products and services, cost is defined as the estimated price to deliver the benefit as defined.
